If you need to make any improvements to your home, now is a great time to do it. Not only are refinancing rates low, but home improvement prices are dropping. And the government is giving pretty sizeable tax breaks for people who opt to go the green route when renovating their home.

You can get 30 percent of the cost, up to $1,500 for many environmentally friendly upgrades to your home through 2010. Upgrades that qualify include windows, doors, insulation, roofs, HVAC, water heaters, and biomass stoves.

If you opt for geothermal heat pumps, solar energy, small wind or fuel cell upgrades, then you get 30 percent of the cost, with no ceiling. This tax credit lasts through 2016.

And the end of this year might be a great time to upgrade your appliances. The American Recovery and Reinvestment Act set aside $300 million for states to offer rebates on several EnergyStar appliances. The details of the rebate have not been ironed out, and are up to each individual state. Check with your state to see how much money you can get back and for which appliances.

We recently bought a house — a fixer-upper. We are trying to do as many green upgrades as possible. Our upgrades will not only focus on the eco-friendly, but also the pocketbook-friendly. Surprisingly, we’ve found some pretty affordable options in our small southern town. You just have to be willing to look and do your homework.

Over the next few weeks, I’ll let you know about our hits and misses with our home upgrades. We’ve already tackled flooring, paint, windows and an EnergyStar appliance. We believe we got the best deals, but will be interested to know if you have any other advice.